Walmart Doubles Down On Discounts To Keep Prices Low As Tariffs Threaten Shoppers' Budgets
Walmart Inc (NYSE:WMT) remains aggressively invested in its ambitions to offer lower prices to spur demand and grow market share amid a soft-spending environment and tariff uncertainties.
The retailer introduced “manager’s special” signs to highlight discounts on key items across departments, Bloomberg reported Thursday citing an official document.
Walmart’s signs also point to deals in cases of extra inventory and seasonal products, a Walmart spokeswoman told Bloomberg.
Also Read: Walmart Pressures Chinese Suppliers To Cut Prices Amid New Tariff Battle
Walmart, known for its low-margin grocery and other products, has become more aggressive in its discounting to attract price-conscious customers as tariffs threaten to increase costs.
Retailers have warned against tariff-induced price hikes and the impact on groceries and other items with shorter supply chains.
Walmart sources about one-third of its products globally, with China and Mexico being the most significant suppliers. Therefore, tariffs present a new hurdle in an already challenging economic environment, where consumers seek low prices amidst high inflation.
Amazon.com, Inc (NASDAQ:AMZN) and Walmart third-party sellers are reportedly shifting stock to Canada, betting the trade war will soon end in their favor.
Walmart reaffirmed first-quarter fiscal 2026 sales growth of 3%-4% in the constant currencies. However, the range for first-quarter operating income growth has widened due to a less favorable category mix, higher casualty claims expense, and the need to maintain flexibility for price investments due to the tariffs.
Walmart renovated 1,930 stores and built 373 new ones, invested $22 billion annually in capex, repurchased $7 billion+ shares, and raised its dividend in the last two years.
Walmart expects e-commerce to contribute about 50% of sales in the next five years.
WMT Price Action: Walmart stock is up 0.94% at $95.84 at publication on Thursday.
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